Investors in KiOR, Inc. (KIOR) saw new options begin trading this week, for the December 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the KIOR options chain for the new December 21st contracts and identified the following call contract of particular interest.The call contract at the $2.50 strike price has a current bid of 15 cents. If an investor was to purchase shares of KIOR stock at the current price level of $2.42/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $2.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.50% if the stock gets called away at the December 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if KIOR shares really soar, which is why looking at the trailing twelve month trading history for KiOR, Inc., as well as studying the business fundamentals becomes important. Below is a chart showing KIOR's trailing twelve month trading history, with the $2.50 strike highlighted in red:
First Week Of KIOR December 21st Options Trading
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